On July 4, 2016, a new edition of the second part of the Tax Code of the Russian Federation came into force. The amendments affected income that is exempt from taxation and expenses that are not included in the base for calculating profit. In addition, a deduction from transport tax has appeared.
The second part of the Tax Code of the Russian Federation was amended by several Federal Laws on July 4, 2016, which came into force after being signed by the President of the Russian Federation on the day of official publication.
Expenses and income
Transport tax
In Chapter 28 of the Tax Code, a new “Tax benefits” has appeared. In accordance with it:
Individuals are exempt from taxation in relation to each vehicle having a permissible maximum weight of over 12 tons, registered in the register of vehicles of the toll collection system (hereinafter in this chapter - the register), if the amount of the fee is to compensate for damage caused to federal public roads the value of vehicles with a permissible maximum weight of over 12 tons (hereinafter in this chapter - the fee) paid in the tax period in respect of such a vehicle exceeds or is equal to the amount of the calculated tax for the given tax period.
To receive a benefit, if an individual or organization is entitled to it, it is necessary to submit an application to the tax authority of one’s choice along with documents confirming the taxpayer’s right to a tax benefit.
Article 362 of the Tax Code of the Russian Federation now provides that the amount of transport tax calculated at the end of the tax period by legal entities in relation to each vehicle with a maximum permitted weight of over 12 tons is subject to reduction by the amount of the fee paid to the Platon system for a specific vehicle in this tax period. If a taxpayer applies a deduction and the amount of tax payable to the budget takes a negative value, it is considered equal to zero. Information from the register of the Platon system will be provided to the tax authorities annually before February 15 in the manner determined by the federal executive body in the field of transport in agreement with the federal executive body authorized for control and supervision in the field of taxes and fees.
Article 363 of the Tax Code of the Russian Federation determines that legal entity-taxpayers who pay into the Platon system for the passage of trucks on federal highways do not have to pay calculated advance payments for transport tax in relation to trucks registered in the system.
State duty benefits
By virtue of the new edition of Article 333.38 of the Tax Code of the Russian Federation, military personnel of the National Guard of the Russian Federation are exempt from paying state fees for performing notarial acts.
Even more code updates and legislative reviews in the special on the St. Petersburg legal portal.
Income tax (IIT) is paid by companies - legal entities operating under the general taxation regime. This popular tax is allocated to Chapter 25 in the Tax Code of the Russian Federation. This publication will tell you who pays income tax, highlight the main issues relating to the application of the tax, its calculation, rates, payment, reporting deadlines and other necessary information.
Ch. 25 Tax Code of the Russian Federation: income tax
For the vast majority of enterprises, the income tax rate (rate) is 20%. The tax amount is distributed to two budgets: 3% to the federal budget, 17% to the regional budget (Article 284 of the Tax Code). This proportion will remain until the end of 2020. There are enterprises with benefits whose tax rate is significantly lower. For example, for corporate income tax, a rate of 13.5% in the regional budget can be applied to companies participating in the special economic zone of the Magadan region.
Income tax benefits are applied (up to a rate of 0%) for medical and educational institutions, participants in investment projects, etc. (Article 284 of the Tax Code).
Payment of income tax is carried out (Article 246 of the Tax Code):
- domestic companies of different legal forms of ownership using OSNO;
- foreign legal entities operating in the Russian Federation or receiving income from Russian sources.
Enterprises that apply a simplified taxation regime, UTII or pay a unified agricultural tax are not payers of income tax. Individual entrepreneurs on OSNO calculate and pay personal income tax as a personal income tax.
In connection with the transfer of tax payments to the budget of different levels, payment orders are issued indicating various budget classification codes (BCC). The income tax codes effective in 2018 can be found in this publication.
The tax base for income tax (Article 247 of the Tax Code) is the difference arising between the company’s income (revenue from sales and other activities taken into account without VAT and excise taxes) and its total costs, i.e. documented costs associated with the production of products, as well as non-sales costs. Chapter 25 of the Tax Code of the Russian Federation provides a detailed classification of income (Articles 248-251 Tax Code) and expenses of the company (Articles 252-270 Tax Code). There is a closed list of expenses that are not taken into account in income taxation. These include dividends calculated to shareholders, contributions to the management company, loan coverage, etc. (Article 270 of the Tax Code).
Recognition of income and expenses when calculating income tax
The existence of 2 accounting methods (accrual and cash) determines the differences in the recognition of income and costs for calculating corporate income tax:
- Accrual method involves accounting for income and expenses in the period of their occurrence, regardless of the actual receipt of funds or their expenditure (Articles 271-272 of the Tax Code);
- Cash method recognizes income when funds are received, and expenses as soon as the company has repaid its obligations to the creditor (Article 273 of the Tax Code).
Companies are given the right to choose an accounting method (and cash only if established restrictions are met) and to consolidate its use in accounting policies.
Income tax calculation
The tax period for income tax is the financial (calendar) year (Article 285 of the Tax Code). The tax base is calculated from January 1 to December 31 of each year; with the onset of the new year, tax calculation begins again. The tax period consists of reporting periods - quarters or months, when the company reports on the results of its work and calculates advance payments. The frequency of payments is determined by the size of the company's turnover.
The procedure for calculating tax and advances on it is provided for in Art. 286 NK.
The calculation algorithm is simple - having determined the amount of profit, the accountant calculates the amount of tax by multiplying it by the established rate.
If the company makes a loss (i.e., an excess of costs over income is recorded), then the base is considered equal to zero, since negative values are not allowed when determining it.
All calculations made and the reliability of determining the base must be documented in the relevant tax registers for income tax, a sample of which the company usually develops and approves in the UP. Accounting forms can be used as they are very convenient. Tax and accounting are necessary to reflect different criteria for the formation of the profitable and cost sides of the company, but it also happens that the calculations are identical when tax and accounting profits coincide.
Such coincidences are extremely rare, since the conditions for accepting income and expenses in accounting differ. The result of such discrepancies was the term conditional income tax expense. This is the conditional amount of income tax (hereinafter referred to as URNNP), calculated according to accounting data (clause 20 of PBU 18/02) using the formula:
URNNP = P buh x C n, where
P book – profit according to accounting,
S n – rate.
The accountant reflects this indicator by posting:
Dt 99/URNNP – Kt 68
If a loss is recorded in the accounting period, then conditional income for income tax should be calculated. This is the same conditional value of the “tax saved” due to the admitted loss.
UDNNP = U buh x C n, where
The accountant has a loss according to accounting data.
It is reflected by wiring:
Dt 68 – Kt 99/UDNNP
When calculating conditional income or expense for non-taxable income, the accountant relies on information about profit/loss before tax.
The tax determined from the amounts of conditional income/expenses, adjusted for the amounts of permanent and deferred tax assets and liabilities, is called current income tax.
Calculation of advance payments for income tax
Although the tax period for income tax is considered to be a year, the company is required to accrue advance payments. There are two methods for calculating them:
- The first is installed for all companies. The reporting periods are the 1st quarter, half a year, 9 months. At the end of each of them, advance payments are made:
- the amount of payment for the 1st quarter is equal to the calculated income tax for this period;
- the amount of the 2nd payment is equal to the amount of tax for the half-year, reduced by the amount of the transferred advance for the 1st quarter;
- the amount of the 3rd payment is the amount of NNP for 9 months, reduced by the amount of advances for 1 quarter and half a year.
The procedure for paying income tax provided for in Art. 285 of the Tax Code, grants the right to transfer quarterly advance payments to companies with revenue not exceeding 15 million rubles. (excluding VAT) per quarter for the previous 4 quarters. This right also applies to budgetary, non-profit organizations and some other enterprises, regardless of the amount of their revenue.
At the end of the quarter, the accountant calculates the amount of the payment (according to the above calculation) and compares its value with the amount of accrued monthly payments made in this quarter. If their total amount is less than the calculated quarterly payment, then the company pays the difference. In case of overpaid advances, the overpayment is counted by the accountant in subsequent periods.
Monthly advance payments for income tax are calculated as follows:
- in the 1st quarter, the accountant counts payments similar to the amounts accrued in the 4th quarter of last year;
- in the 2nd quarter, the accountant divides the amount of tax on profit accrued for the 1st quarter by 3 and transfers it in shares for each month of the quarter;
- in the 3rd quarter, the accountant subtracts the tax amount for the 1st quarter from the income tax amount for the half-year and, dividing it by 3, determines the amount of advances for the months of the 3rd quarter;
- in the 4th quarter, the amount of income tax for 9 months, reduced by the amount of income tax for six months, is divided by 3 and the amount of monthly advances is determined.
- The second method of calculation is calculating the income tax from actual profits. The company has the right to establish it in the new year by notifying the Federal Tax Service about this before December 31 of the previous year. With this method, the tax is calculated on the basis of the actual profit received, i.e., by making monthly advance transfers, the tax amount is calculated from the actual profit received for the month. For example, for January they transfer NPT from the profit of January, for February - NPT from the profit received for January and February, reduced by the amount of tax transferred in January, etc.
Deadline for paying income tax
If the reporting periods for income tax are a quarter, half a year and 9 months, then advance payments upon their end must be made before the 28th day of the month following the reporting period.
Monthly advances are transferred before the 28th day of the reporting month, i.e. for May - before May 28, for June - before June 28, etc.
For payments made on the basis of actual profit received, advances are made no later than the 28th day of the following month.
Regardless of the method of calculating payments at the end of the year, the accountant calculates the real value of the NNP, compares it with the amount of payments made and adjusts - the shortfall is paid to the budgets, and the overpaid amounts are taken into account in subsequent payments. The adjusted, i.e., underpaid amount of income tax for the year should be transferred before March 28 - no later than the time of submission of the income tax return to the Federal Tax Service.
Income tax entries
Let us demonstrate the main records that an accountant operates when accounting for income taxes:
You can read more about postings via NNP.
The company’s arguments about the incorrect application by the courts to the legal relations in question of the provisions of Chapter 25 of the Tax Code of the Russian Federation are untenable, taking into account the reference in paragraph 3 of Article 346.5 of the Tax Code of the Russian Federation to paragraph 1 of Article 252 of the said Code, according to which the expenses of the taxpayer attributable to expenses must be justified, then are economically justified and documented. In the present case, as established by the courts, these conditions were not met by the company. Contrary to the arguments of the complaint, the company’s intention to operate fishing vessels for their intended purpose and the actions it took related to preparing the vessels for fishing do not indicate the opposite.
Decree of the Government of the Russian Federation dated December 3, 2012 N 1249 (as amended on March 15, 2017) “On the procedure for state regulation of tariffs for the disposal of radioactive waste” (together with the “Regulation on state regulation of tariffs for the disposal of radioactive waste”)